Since 2015, China stressed macro control and strongly pushed forward reform, making economic running smooth. However, while new functions was switching old ones, economic downturn still existed, and the development of real estate and decoration materials slowed down, architectural decoration industry was also influenced to some degree, but it was still in stable condition and gradually tended to a new normal. 2016 is the first year of the “Thirteenth Five-Year” and also a phase of fortification of pushing forward structural reform. Under good planning, Bauing Group will face up new tends and new challenges. Therefore, the reporter from CBDA specially interviewed Gu Shaobo the President of Bauing Group and had a detailed communication and understanding of the development course, historic development experience, performance of Bauing in the “Twelfth Five-Year” period and its development blueprint in the “Thirteenth Five-Year” period. The interview notes are reprinted here.    

▲ The Topic Speech Made by Gu Shaobo about Being the Pioneer of “One Belt and One Road” and “Internet +” Strategy  

Here follows the interview notes

CBDA: Could you summarize Bauing’s 2015 with a few key words and explain why?

Gu: 2015 was a key year for Bauing in furthering innovative transform and development and setting an industry example. Based on accurate interpretation of national macro-economic policies and industry development trends, Bauing set feet in China and went towards the world. For that, it strengthened “scientific management” strategy inside and worked on to create superior engineering and build a good image: determine strategies of keeping “investment and acquisition”, “Internet +”, “One Belt and One Road” at the same time: at the same time, about expanding overseas business, Bauing started “economic and trade cooperation” and “cultural communication” the two engines, for promoting economic and trade cooperation with cultural communication and quickly opening markets in countries along “One Belt and One Road”.    

If you want some key words to describe the 2015 year of Bauing, I think it might be---“scientific management”, “superior projects”, “investment and acquisition”, “Internet +”, “One Belt and One Road”, “economic and trade cooperation”, “cultural communication”.

CBDA: Could you summarize the development course of Bauing during the “Twelfth Five-Year” period and list us some major events?

Gu: At the beginning of the “Twelfth Five-Year” period, Bauing was only a medium-scale enterprise among the top 20 in domestic decoration industry. In the past five years, with painstaking and joint efforts, Bauing made every step firm. In the latest year, Bauing leapt forward and realized development goals in all sides, also played a positive role in national economic and social development. 

During the “Twelfth Five-Year” period, the major events are as follows:   

1） In Dec. 2013, Bauing Group was listed in Chinese capital market, stock code 002047.  

2） Bauing Group actively practices national “One Belt and One Road” strategy, and established PT Bauing in Dec. 2014 and made a remarkable achievement. As an enterprise that pay attention to culture, Bauing also organized kinds of cultural communication activities besides contracting engineering projects in Indonesia. For example, in Nov. 2015, PT Bauing held Chinese Calligraphy and Painting Exhibition which is sponsored by the Ministry of Education and Culture of Indonesia in Djakarta, for providing an ideal opportunity for people who like Chinese culture, and celebrities witnessed this in the ceremony.  

3） Nov. 2014, Bauing acquired South Decoration and established oversaes business platform. This optimized Bauing’s business structure and realized strong complementation of strengths and resources.  

4） Apr. 2015, Bauing acquired Kennith Ko. Design. The strategy of design-driven engineering showed effective and realized operation revenue increase.  

▲ Gu Discussed “One Belt and One Road” Strategy with Zheng Junfeng the Host of CCTV

CBDA: What were your major achievements in 2015?

Gu: Bauing Group actively pioneered national “One Belt and One Road” strategy by setting feet in architectural decoration industry, stepping forward the world and making a series of achievements in 2015. 

1） About projects, Bauing signed strategy cooperation agreement with PULAUINTAN and jointly established the General Hospital of the Army in Djakarta, Indonesia. In Mar., Bauing signed the Contract of Decoration Engineering of “Diamond” Complex of KOSMO Company with PT. KOSMO, with total amount of 161,300, 000 dollars.  

2） About talent cultivation, Bauing signed enterprise-university cooperation with Guangdong University of Foreign Studies. It also established College of Architecture in Guangxi Hydropower College, and had experienced engineers lectured regularly for students and organized appointments in famous universities in China.  

3） In Nov., Gu Shaoming the Chairkman of the Board of Directors attended and make a topic speech in China International Big Data Innovative Development Conference. It continued to expand Indonesian market and keep friendship with many foreign persons who like China. Those measures about entering Internet and expanding overseas markets broadened business layout and benefited many oversea investors.  

4） Engaging in strengthening enterprise with culture. Besides Chinese Calligraphy and Painting Exhibition of PT Bauing, Bauing also held Bauing Cup International Calligraphy, Painting, Seal Creation Competition, invested the shooting of China-Indonesia play My Chinese Father and Mother…”Cultural Bauing”, “Art Bauing” is the enterprise spirit of Bauing, the cultural establishment was awarded “Shenzhen Top 10 Units of Enterprise Culture Establishment” and many other prizes.  

5） Following the “One Belt and One Road” strategy, Bauing pioneered practicing the strategy. It visited Djakarta, Pontianak, Bali of Indonesia, Southeast Asia and countries along the Silk Road for investigating and negotiating business, and actively developed kinds of economic and trade cooperation and cultural cooperation, such as participating in world Chinese merchants conference as the only private enterprise from mainland China, Gu Shaoming interviewed by CCTV, South Daily, China Business and mainstream media.  

6） Drive engineering with design. Bauing acquired Kennith ko Design and established Bauing Institute of Design, which was awarded “2015 China Top 10 Indoor Design Institutions”.  

7） Actively develop cooperation between banks and Bauing. Bauing strengthened domestic and overseas business at the same time. According to the Q3 report of 2015, the total in operation revenue in the first 3 quarters in 2015 reached to 4.848 billion yuan, with a y-o-y increase of 36.96%, net profit reached 250 million yuan, with a y-o-y increase of 35.08%.  

▲ Gu Shaobo Made A Report on Exploration and Practice of International Development of Decoration Enterprises

CBDA: What were your new exploration and practice ion 2015?   

Gu: for an architectural decoration enterprise, continuous design innovation is an important guarantee of constant vigor in the industry. Bauing paid much attention on designers’ practice and innovation awareness. It encouraged designers to broaden minds in architectural design, business space and art and pursue innovation. In 2015, Bauing Institute of Design was awarded China Top 10 Indoor Design Institutions. 

Besides continuously pushing forward traditional decoration business, Bauing also optimized structure and implemented various development modes including investing “5i5j.copm”, “Wuhan Syscan Technology”, establishing Hexingxing Supply Chain, Lituo E-Commerce Platform, setting up new business of “Internet + Architectural Decoration”, and made primary achievements. “Internet +” has swept over all industries. Only by grasping time and using right means can we make benefits and face new development opportunities.  

Talent is the most important resource of an enterprise. Bauing pioneered exploring enterprise-university cooperation mode. In Nov. 2015, Bauing Group signed enterprise-university cooperation agreement with Guangdong University of Foreign Studies and became a cooperation member of the Collaboration & Innovation Center of the 21 st Century Maritime Silk Road, which played a vital role in creating high-end international talents and developing and studying overseas business. 

CBDA: How do you think of the whole trend of the industry in 2015?

Gu: in 2015, our nation strengthened macro control and was in the switching period between new and old functions. The development of real estate and decoration materials slowed down and architectural decoration industry was also influenced. 

Throughout all industries, every enterprise was positively facing up current trends. They entered “Internet +”, practiced national strategies and optimized industrial structure at the same time, for developing while keeping scale stable. What they did played a strong role in driving the development of macro economy.   

▲Gu Shaobo the Chairman of Bauing Holdings Singed Together with Famous Singer Wang Hongwei for the 20 th Anniversary of Bauing. 

CBDA: Was there any policy, event, industrial environment or trend in 2015 that influence or promote your development?   

Gu: the international economic development goals of Silk Road Economic Belt and Maritime Silk Road proposed by President Xi created good international environment for the development of architectural industry. Set in this background, Bauing developed competitiveness in technical innovation, global layout and international engineering market.    

At the same time, the world realized interconnection. As China’s international standing rises further and Chinese cultural recognition develops, Bauing has more and more opportunities to participate in international economic, cultural and scientific communication.    

In 2015, China Architectural Engineering Decoration Award, China Architectural Decoration Industry Top 100, China Architectural Curtain Wall Industry Top 100, China Architectural Decoration Design Institutions Top 50…kinds of selection activities organized by China Architectural Decoration Association were held, where Bauing was consecutively awarded, which greatly developed Bauing’s reputation and brand credit. 

CBDA: for 2016, what expectations do you have? What strategic planning and arrangement do you have?

Gu: the market still has vast potential which needs us developing. The building of all-round well-being society cannot live without architectural decoration industry. “Winter Olympic”, Overall West Development and urbanization speed-up also bring opportunities for us. 

So does international market. In 2016, we will continuously and firmly practice One Belt and One Road strategy, pushing forward practical business cooperation with Indonesia, Malaysia, Singapore and many other countries and areas. 

CBDA: for the development of architectural decoration industry in the “Thirteenth Five-Year” period, what expectations do you have?

Gu: Chinese architectural decoration industry has unprecedented development in design standards, engineering scale, capital input, application of new technologies and new materials after nearly 30 years of rapid development.    

In the “Thirteenth Five-Year” period, “Internet +”, “green development”, “One Belt and One Road” will be further developed, and coupled with industrial arousal of scientific innovation awareness, the whole industry will be certainly in good development trend. Bauing is willing to create more and more classic projects for the nation and make Chinese excellent decoration works blossom in foreign land together with the industry. 

▲  Gu Shaobo wrote a Chinese calligraphy for CBDA.